PETALING JAYA: Foreign investors sold RM1.04 billion net of equities on Bursa Malaysia last week, the largest weekly foreign net outflow in 12 weeks.
MIDF Research said the exodus of foreign funds from Bursa last week marked the fourth uninterrupted week of foreign net selling.
Foreign net selling intensified on Monday as foreign investors offloaded RM357 million, the largest in a day since early May this year. Sentiment was partially dampened by China’s retaliation towards US President Donald Trump’s latest tariff threat by letting the yuan tumble to the weakest level in more than a decade.
“It is notable that the heavy foreign net outflow on Monday was in conformity with other regional peers under our coverage,” said MIDF in its fund flow report.
The pace of foreign net selling slowed down a little to RM219.9 million net on Tuesday. China’s move to limit the depreciation of the yuan restored calm in investors’ nerves.
The level of foreign net outflow heightened to RM269.5 million following a batch of surprise interest rate cuts by central banks across the Asia Pacific (New Zealand, Thailand and India) to counter the risks in the global economy.
Optimism returned to the markets on Thursday as foreign net selling substantially dropped to RM30.7 million amidst the green light granted by Japan to allow exports of semiconductor manufacturing material to South Korea.
Nevertheless, such positive vibes diminished the next day as foreign funds dumped RM158.1 million after the US put the decision for US companies to restart business with Huawei Technologies Co on hold as China halts crop buying from the US.
“Last week’s massive net outflow brings the year-to-date the foreign net outflow from Malaysia to stand at RM6.01 billion. This makes up around 51.0% of last year’s total foreign net outflow,” MIDF said.
